Beginning later this year, the platform will distribute Assetco’s investment strategies and financial products, initially to US advisers, via its Financial Supermarket.

The marketplace enables advisors to search for and select products for clients, using digital search capabilities to access virtual products all in one location.

Assetco is now a member of Investcloud’s client base, which currently includes over 150 asset managers, 400 wealth managers, and 140,000 individual financial advisors. The platform has over $6trn (£5trn, €5.62trn) of assets, globally.

Campbell Fleming, chief executive of Assetco, said the firm is undergoing a period of dynamic change: “Our partnership with Investcloud plays a pivotal role in our transformational strategy in the US, as we engage in a digital partnership to align ourselves with investors preferences of the future.”

Though the partnership will launch in the US initially, Fleming said Investcloud’s digital approach to distribution would give Assetco the ability to reach a global audience.

The subsidiaries of Assetco, namely River and Mercantile, SVM, Saracen, and Rize ETF, will also have access to the platform.

Alex Hoctor-Duncan, chief executive of River and Mercantile, said: “We are well aware of the potential opportunities in the US and believe our tailored strategies will be very successful through our partnership with Investcloud.

“It’s an exciting new initiative, reinforcing our belief that as a dynamic boutique we can move with the times and change as the investment landscape changes.”

For more insight on UK wealth management, please click on www.portfolio-adviser.com

The financial services giant has hired Anil Wadhwani as group chief executive.

He will join from Manulife, where he was president and chief executive of Manulife Asia.

Wadhwani will assume the role on 25 February 2023. Mark FitzPatrick, interim group chief executive, will continue to lead the business and will support Wadhwani in his transition.

London & Capital

The wealth manager has named Tom Sheridan as senior adviser in its US family office team.

Sheridan was previously chief executive of Seven Investment Management (7IM) until he retired in 2019.

IQ-EQ

The financial services provider has named Sanaa Hira as sustainability manager.

Prior to joining IQ-EQ, Hira spent seven years at an unnamed independent asset management company, where she held information analysis and consulting roles.

Artemis Investment Management

Adrian Brass will be joining the Artemis US equities team in July 2022 to be the lead manager of the Artemis US Extended Alpha Fund.

He will be joined by James Dudgeon, who will be a co-manager on the fund and will contribute to idea generation across all of Artemis’ US equity strategies.

Will Warren will also be a co-manager of the Extended Alpha Fund and remain lead manager of the Artemis US Absolute Return Fund. He will also continue to head the US team’s technology sector research.

Brass was most recently the lead manager of the Majedie US Equity Fund and co-manager of the Global Equity and Global Focus funds, which were launched in 2014.

Dudgeon worked as a co-manager on Majedie’s US equity team alongside Brass.

River and Mercantile

The equities and infrastructure investment specialist has appointed James Sym as head of equities.

Sym joined R&M from Schroders in 2020 to establish the business’s European Equities operation.

He currently manages the ES River and Mercantile European Fund.

On Tuesday, it was confirmed that the businesses have reached an agreement for an all-share acquisition of the entire issued and to be issued ordinary share capital of River and Mercantile Group, excluding the stake already held by Assetco.

It will see Assetco pay £98.8m ($133.1m, €118m), with River and Mercantile (R&M) shareholders receiving 0.73 Assetco shares for every R&M share they hold.

R&M said the deal will deliver total value to shareholders of £288.8m, as they will also benefit from a return of capital of £190m from the proceeds of the sale of its Solutions business to Schroders, which was a precondition of the AssetCo acquisition.

At completion, which is expected in the second quarter of 2022, River and Mercantile shareholders will own just under 42% of the combined group.

Market undervalued River and Mercantile

Jonathan Dawson, chairman of River and Mercantile Group PLC, said: “The board believes that the offer from Assetco not only represents good value to shareholders, but provides our clients and colleagues with a powerful investment platform led by a team with deep experience in the asset management industry.

“The board encourages our shareholders to support this transaction as the board will be doing in respect of their own holdings.

“Taking this transaction and the sale of Solutions to Schroders together, we will have delivered total value to shareholders of £289m, or £3.35 per share – a significant premium to the group’s undisturbed share price last Summer.

“This confirms the board’s view that the market was undervaluing R&M and validates the steps we have taken to realise value for our investors.”

Job cuts on the cards?

Currently, the intention is to bring River and Mercantile together with Assetco’s existing active equities manager, Saracen, to form the foundation for Assetco’s active equities business.

It is also intended that R&M’s sustainable infrastructure investment strategy will form the first building block in the combined group’s private markets capabilities.

However, following completion and the sale of the US Solutions business, the agreement document outlines that “there will be a need to right size the RMG business for a significant reduction in scale”.

Assetco chairman Martin Gilbert also alluded to the prospects of a restructure: “The asset and wealth management industry is contending with significant structural shifts, including technological advances, a reorientation of investing and evolving client needs.

“We are committed to building an agile asset and wealth manager that is fit for purpose in the 21st century.

“The acquisition of RMG is a core part of this strategy; it strengthens our active equity capability and importantly provides a foundation stone to building a private markets business given its infrastructure investment team.  RMG complements our existing presence in thematic investing with Rize ETF and our investment in Parmenion, a digital platform for the financial planning sector.

“I’m looking forward to continuing to work with RMG team to develop the business, to ensure we continue to meet investors’ needs and to unlock value for RMG Shareholders.”

In November 2021, River and Mercantile confirmed that it had been approached by two potential suitors: AssetCo and Premier Miton.

They were given until 21 December to make offers, a deadline which was then extended to 18 January 2022.

Premier Miton announced on 13 January that it was departing the field, leaving it clear for AssetCo. However, a further extension has now been given to 25 January.

There remains no certainty that an offer will be made.

What’s the hold up?

As previously reported, both AssetCo and Premier Miton stated that any offer would be conditional on River and Mercantile completing the sale of its Solutions business to Schroders, which is due in the first quarter of 2022.

Whether this remains the only stumbling block is unclear, as few details are given in the stock exchange announcements from either company.

River and Mercantile says that discussions remain “ongoing at this time”, adding that the 25 January deadline can be further extended.

While extoling the virtues of a deal, AssetCo reiterates that there “can be no certainty that a firm offer will be made”.

Company chief executive Campbell Fleming said: “We welcome the board of River and Mercantile Group’s decision to extend the offer period. Discussions have progressed over the festive period and into January.

“The extended period will allow us to finalise a potential offer to acquire River and Mercantile (excluding its Solutions business) for the benefit of both AssetCo and River and Mercantile shareholders.

“Over the last few weeks, we have met with additional members of the River and Mercantile team which has confirmed our view of the great potential it has as an active equity and infrastructure investment manager.”

In November 2021, RM confirmed it had received preliminary approaches from both Premier Miton and AssetCo.

However, Premier Miton announced in a London Stock Exchange filing on 13 January that it was withdrawing from M&A talks.

Mike O’Shea, Premier Miton Group’s chief executive, said: “We are most grateful to the board of RM for their co-operation and assistance as we have assessed the merits of a possible transaction, especially so given the major changes ongoing in their business.

“We have concluded that there are insufficient commercial merits for our shareholders to make a formal proposal for the acquisition of RM.

“We wish the employees at RMG well for their future and we look forward with confidence to pursuing our own strategic plans for organic growth while at the same time exploring tactical and strategic opportunities that can further strengthen our business and accelerate our growth.”

AssetCo

But, River & Mercantile said that while Premier Miton has pulled out of negotiations, “discussions remain ongoing with AssetCo”.

The firm added, however, that “there can be no certainty that a firm offer will be made nor as to the terms of any such offer”.